Bottling that blockbuster beverage: How to choose the right contract manufacturer

'Bottling Season at Alagash Brewery' in Portland, Maine. N.B. The company is not a contract bottler so photo is purely illustrative (Alagash Brewing/Flickr)

Related tags:
DrinkPreneur Live! 2014, MyDrink Beverages

Adomas Pranevicius, general manager of MyDrink Beverages tells BeverageDaily.com readers how to choose the right contract manufacturer for their product – and why it's vital to assess everything from capabilities to communications and returns policies.

BD: Adomas – There are hundreds of contract bottlers out there, but assessing their capabilities can be a dark art for smaller brands. Who should you work with, and how important is it that they have expertise in filling your precise product?

AP: The decision can be a tough one, and can play a key role in the success or failure of a brand. You have to know what kind of product you want to produce before analyzing who can help you – this helps you ascertain your technological requirements and matching these to your financial situation before you begin.

Technology, Company Policy and Communications are the most important factors in my opinion.

TECHNOLOGY

Is a given contract manufacturer working with water-based beverages (energy drinks, sports drink, soft drinks), dairy drinks or alcohol drinks? You need to understand whether they are specialized enough to help you.

What type of filling technology do they use – hot fill, cold fill or another? At this point you should already know the requirements of filling for your product. Don’t go any further if the manufacturer is unable to offer you a right filling technology.

A linked question is concerns the type of packaging the bottler is offering? Is it PET, glass or cartons? How flexible might they be in terms of using your own packaging?

Some manufacturers only offer a few different packages and are not willing to cater for alternatives.

COMPANY POLICY

Does the manufacturer meet your technological requirements? Well, that’s a good start but you then need to analyze its company policy and ethos.

It’s vital to determine whether a contract manufacturer is interested in working with you. Some questions to ask: ‘Are they are working with entrepreneurs or SMEs?’ What are their minimum order quantities?’ N.B. These demonstrate their flexibility or lack thereof.

Sometimes you can negotiate a better deal, so it pays to be patient and seek for the opportunities.

Pricing structure and payment terms. Some manufacturers only show the final price. Personally, I avoid working with such bottlers, as it suggests a lack of transparency.

You need to know the precise cost of packaging, filling cost, labeling and ingredients cost. Crucially, you need to know their payment terms.

Production planning and queues. Some contract manufacturer have three to six month queues, I even know a few who have forward bookings for one to two years! So you must find out when your order can be fulfilled.

Product return policy. This is a tricky question. Product spoilage is a real possibility, and if it occurs you’ll see how transparent and how reliable your partner is. Discuss it in advance.

Certificates. Before starting production you need to know your certification requirements. Bear in mind that some retailers ask for specific certificates, so plan ahead to work out what you need from the bottler.

Raw materials. Sometimes contract manufacturers are not willing to work with other raw material suppliers. So find out if you’ll be able to supply them with your own raw materials for production.

COMMUNICATIONS, ETC….

Communication. It’s important to understand their quality of communication. English isn’t spoken everywhere in Europe, so a language barrier can spring up. Naturally, the speed of communication is very important as well.

Current clients and product. Sometimes contract manufacturers decline to fill products due to the fact that you intend to launch a beverage in direct completion with another client. With this in mind, it’s wise to check out their existing client list in advance.

International exhibitions. Is the contract manufacturer attending exhibitions? If so, it’s very useful to meet your partner at exhibitions to strengthen relations and discuss next steps.

Last but not least. You have to go and check the factory by yourself. We are always making visits and checking factories belong to the companies that we work with. It’s very important to assess the quality of facilities, meet their staff and to understand their motivation.

In conclusion, we always advise that you only work with reliable factories. A decision to choose a wrong contract manufacturer could be your last one. Don’t make this mistake!

Adomas Pranevicius is general manager of MyDrink Beverages, a beverage innovation company that also organizes beverage startup incubation event DrinkPreneur Live!

Want to contribute an article for our INDUSTRY VOICES series - offering advice, a more in-depth interview or an opinion on an important industry issue? Please email ben.bouckley@wrbm.com

This content is copyright protected

However, if you would like to share the information in this article, you may use the headline, summary and link below:

Adomas Pranevicius, general manager of MyDrink Beverages tells BeverageDaily.com readers how to choose the right contract manufacturer for their product – and why it's vital to assess everything from capabilities to communications and returns policies.

Related products

On-Demand Supplier Webinar

06-Feb-2015 - The Coca-Cola Company invested in Chicago-based co-operative Fairlife LLC in December 2012, and since then the company’s star has only risen further. Here, CEO Steve Jones introduces the company and its mission, looking at trends in dairy and the ‘protein...

On-Demand Supplier Webinar

06-Feb-2015 - Stand out in the competitive beverage marketplace and satisfy consumers’ thirst for fun by adding the creamy, smooth mouthfeel and visual appeal of foam and froth. Using naturally sourced foaming agents, you can add superior, long-lasting foams to a variety...

On-Demand Supplier Webinar

06-Feb-2015 - Ingredients such as chia, ancient grains and flaxseed have captured the interest of health-conscious consumers, and more and more beverage companies are taking notice. But where to begin? Long-time beverage ingredient innovator and turnkey formulator Glanbia Nutritionals will offer insights...

On-Demand Supplier Webinar

06-Feb-2015 - We interrupt this webinar to bring you breaking news in functional beverages. Only on AIDP News Channel will you hear from experts in the field of functional beverages. AIDP is known as being an innovator in function and our top...

On-Demand Supplier Webinar

08-Jan-2015 - What are the fastest-growing beverage categories and which consumer trends are successful firms tapping into? ‘Real’ sugar? Fermented beverages? Plant waters? And how are companies such as Keurig changing the beverage landscape? Hear from a beverage entrepreneur, a retailer, a...

On-Demand Supplier Webinar

08-Jan-2015 - Just as with the search for the Fountain of Youth, The Lost Arc or the Meaning of Life; the Holy Grail of functional beverages seems to be an ongoing quest that few of us have been able to conquer, until...

On-Demand Supplier Webinar

08-Jan-2015 - Social media has forever changed the way consumers talk to one another (and the way companies and consumers talk to each other, too). Find out how you can use social media to take your beverage business to the next level.

On-Demand Supplier Webinar

08-Jan-2015 - With annual sales approaching $9B, the US protein beverage market is thriving. The category has quickly become a destination for busy, health conscious, active consumers of all ages. Capturing mainstream consumers can be lucrative for marketers, but one that...

On-Demand Supplier Webinar

08-Jan-2015 - FoodNavigator-USA & BeverageDaily have gathered together CEOs from some of the most innovative beverage companies in the US from Mamma Chia and KeVita to Vertical Water and KonaRed to discuss growth opportunities in the beverage aisle; how difficult it is...

On-Demand Supplier Webinar

26-Jan-2015 - Where are the high-growth beverage and liquid dairy categories in global terms, and where does Zenith International think the attractive opportunities lie, now and over the next, five, say years?Matt Wilton will also provide us with examples of successful new...

On-Demand Supplier Webinar

09-Jan-2015 - Coldpress MD Andrew Gibb is an High Pressure Processing (HPP) pioneer, and here he tells us about his brand’s acceleration in the UK following its late 2013 listing with Tesco and progress in other markets, and shines light on the...

On-Demand Supplier Webinar

09-Jan-2015 - Industry experts ask to what extent suppliers ‘lead’ consumers or brands in terms of inspiring new drinks trends or are they more reactive?
How is process technology driving ‘hot’ new product categories?
What are the packaging implications of your process choice?
Will ‘premium’...

Clinical study

01-Mar-2015 - Looking for an ingredient that can deliver serious hydration, endurance and recovery benefits for your next sports bar, beverage or supplement? Sustamine® is a science-supported ingredient that can: enhance electrolyte and water absorption in the intestines; stimulate glycogen synthesis; inhibit muscle...

Data sheet

24-Feb-2015 - The 2015 Sweetener360: Are You Marketing to Buzz or Behavior?With over 15,000 consumers surveyed, we’ve validated our findings from 2014—what consumers say and what they do don’t always align. Take a look at the 2015 Sweetener360 SlideShare deck for these...

Technical / white paper

23-Feb-2015 - Understanding worldwide consumer needs to create successful food & drink productsClean Label has been the top theme in the food & beverage industry in the last years – and it is still growing in importance. But what exactly does Clean...

Data sheet

24-Jan-2015 - BioNeutra is the largest supplier of isomaltooligosaccharide (IMO) in the North American and European markets. Our VitaFiber™ ingredients provide dietary fiber, prebiotic function and a natural sugar-like taste all with a low caloric value! VitaFiber™ is available in both powder and...